Compensation for Change Orders. 4.5.1 For change orders directed by Architect to be performed by the Construction Manager on a time and materials basis pursuant to Subparagraph 9.5.1 of Chapter 3, the Construction Manager shall be reimbursed the actual incurred cost and expense plus a markup of percent ( %) for the change order Work performed by its forces. 4.5.2 When additional Work by the Construction Manager’s subcontractors and suppliers is required and approved pursuant to Subparagraph 9.5.3 of Chapter 3, the Construction Manager shall be reimbursed the actual incurred costs and expenses paid to those subcontractors and suppliers, plus a markup of percent ( %). 4.5.3 If the Construction Manager disputes a change order decision pursuant to Paragraph 9.7 of Chapter 3, it must give the Owner its written notice of dispute, including the reasons therefor, within calendar days of the disputed decision. 4.5.4 For the purposes of this Agreement, a change order is a written document prepared by the Architect, and executed by the Owner, Construction Manager, and Architect, setting out in detail the specific change in the Work, the dollar amount of any adjustment to the GMP, if any, and any adjustment to the contract time. 4.5.5 For the purposes of this Agreement, a construction change directive is a written document prepared by the Architect and executed by the Owner, which serves to change the work and provides for any proposed adjustment in the GMP or contract time. A construction change directive shall be used in the event the parties to this Agreement cannot reach an agreement on the terms of a change order. 4.5.5.1 Upon request of the Owner or the Architect, the Construction Manager shall, without any increase in the GMP, submit to the Architect within 15 days, in such form as the Architect may require, an accurate written estimate of the cost of any proposed Work set forth in the construction change directive. 4.5.5.2 The estimate shall indicate the quantity and unit cost of each item of materials, and the number of hours of work and hourly rate for each class of labor, as well as the description and amounts of all other cost chargeable under the terms of this subparagraph. Unit labor costs for the installation of each item of materials shall be shown if required by the Architect. The Construction Manager shall promptly revise and resubmit such estimate if the Architect determines that it is not in compliance with the requirement of this Article, or that it contains errors of fact or mathematical errors. If required by the Architect, in order to establish the exact cost of new work added or of previously required work omitted, the Construction Manager shall obtain and furnish to the Architect bona fide proposals from recognized suppliers for furnishing any material included in such Work. Such estimates shall be furnished promptly so as to occasion no delay in the Work, and shall be furnished at the Construction Manager’s expense. The Construction Manager shall state in the estimate any extension of time required for the completion of the Work if the change or extra work is ordered. Notwithstanding any other provision of this Agreement, and without limitation, the Construction Manager shall obtain and maintain: (i) documentation that clearly identifies, and permits evaluation by School Board of, the ▇▇▇▇ up on change orders; (ii) supporting documentation for change orders that reports detailed and specific amounts for labor, materials and equipment charges; and (iii) supporting documentation showing labor burden percentages, if applicable and if specifically provided for in writing by School Board. 4.5.5.3 If the construction change directive provides for an adjustment to the Contract Sum, the adjustment shall be based on one of the following methods, as selected by the Owner. (a) By unit prices stated in the Contract Documents or otherwise mutually agreed upon. (b) By cost and percentages estimated by the Construction Manager as defined in this subparagraph and accepted by the Owner. The Construction Manager’s estimate shall become a fixed price which shall not be changed by any variation in the actual cost of executing the Work covered by the change. (c) By actual cost determined after the Work covered by the change is completed, plus percentage. (d) By submission to a Court, which shall determine the fair value of the work covered by the change. As used in this subparagraph, “cost” shall mean the estimated or actual net increase or decrease in cost to the Construction Manager, subcontractor, or sub-subcontractor for performing the work covered by the change, including actual payments for materials, equipment rentals, expendable items, wages and associated benefits to workmen and to supervisors employed full time at the site, insurance bonds and other provable direct costs, but not including any administrative, accounting, or other indirect or overhead costs, or any wages or benefits of supervisory personnel not assigned full time to the site, or any amount of profit or fee to the Construction Manager, subcontractor or sub-subcontractor. As used in this subparagraph, “percentage” shall mean an allowance to be added to or subtracted from the cost in lieu of overhead and profit and of any other expense which is not included in the cost of the Work covered by the change, as defined above. Percentage for the Construction Manager, a subcontractor, a sub-subcontractor or any other lower tier subcontractors for any work performed by their own forces shall be a maximum of 15% of any net increase, and 5% of any net decrease when the decrease results in a reduction of overhead requirements. The maximum percentage of 15% as applied to subcontractors shall be a cumulative percentage, inclusive of sub-contractor, sub-subcontractors and other subordinate contracting parties. In the event the Construction Manager does not perform any of the Work with its own forces, the percentage for the Construction manager shall be the same percentage increase or decrease as the Construction Manager Fee set out in paragraph 3.10.5 above.
Appears in 1 contract
Sources: Construction Agreement
Compensation for Change Orders. 4.5.1 For change orders directed by Architect to be performed by the Construction Manager on a time and materials basis pursuant to Subparagraph 9.5.1 of Chapter 3, the Construction Manager shall be reimbursed the actual incurred cost and expense plus a markup of percent ( %) for the change order Work performed by its forces.
4.5.2 When additional Work by the Construction Manager’s subcontractors and suppliers is required and approved pursuant to Subparagraph 9.5.3 of Chapter 3, the Construction Manager shall be reimbursed the actual incurred costs and expenses paid to those subcontractors and suppliers, plus a markup of percent ( %).
4.5.3 If the Construction Manager disputes a change order decision pursuant to Paragraph 9.7 of Chapter 3, it must give the Owner its written notice of dispute, including the reasons therefor, within decision. calendar days of the disputed decision.disputed
4.5.4 For the purposes of this Agreement, a change order is a written document prepared by the Architect, and executed by the Owner, Construction Manager, and Architect, setting out in detail the specific change in the Work, the dollar amount of any adjustment to the GMP, if any, and any adjustment to the contract time.
4.5.5 For the purposes of this Agreement, a construction change directive is a written document prepared by the Architect and executed by the Owner, which serves to change the work and provides for any proposed adjustment in the GMP or contract time. A construction change directive shall be used in the event the parties to this Agreement cannot reach an agreement on the terms of a change order.
4.5.5.1 Upon request of the Owner or the Architect, the Construction Manager shall, without any increase in the GMP, submit to the Architect within 15 days, in such form as the Architect may require, an accurate written estimate of the cost of any proposed Work set forth in the construction change directive.
4.5.5.2 The estimate shall indicate the quantity and unit cost of each item of materials, and the number of hours of work and hourly rate for each class of labor, as well as the description and amounts of all other cost chargeable under the terms of this subparagraph. Unit labor costs for the installation of each item of materials shall be shown if required by the Architect. The Construction Manager shall promptly revise and resubmit such estimate if the Architect determines that it is not in compliance with the requirement of this Article, or that it contains errors of fact or mathematical errors. If required by the Architect, in order to establish the exact cost of new work added or of previously required work omitted, the Construction Manager shall obtain and furnish to the Architect bona fide proposals from recognized suppliers for furnishing any material included in such Work. Such estimates shall be furnished promptly so as to occasion no delay in the Work, and shall be furnished at the Construction Manager’s expense. The Construction Manager shall state in the estimate any extension of time required for the completion of the Work if the change or extra work is ordered. Notwithstanding any other provision of this Agreement, and without limitation, the Construction Manager shall obtain and maintain: (i) documentation that clearly identifies, and permits evaluation by School Board of, the ▇▇▇▇ up on change orders; (ii) supporting documentation for change orders that reports detailed and specific amounts for labor, materials and equipment charges; and (iii) supporting documentation showing labor burden percentages, if applicable and if specifically provided for in writing by School Board.
4.5.5.3 If the construction change directive provides for an adjustment to the Contract Sum, the adjustment shall be based on one of the following methods, as selected by the Owner.
(a) By unit prices stated in the Contract Documents or otherwise mutually agreed upon.
(b) By cost and percentages estimated by the Construction Manager as defined define in this subparagraph and accepted by the Owner. The Construction Manager’s estimate shall become a fixed price which shall not be changed by any variation in the actual cost of executing the Work covered by the change.
(c) By actual cost determined after the Work covered by the change is completed, plus percentage.
(d) By submission to a Court, which shall determine the fair value of the work covered by the change. As used in this subparagraph, “cost” shall mean the estimated or actual net increase or decrease in cost to the Construction Manager, subcontractor, or sub-subcontractor for performing the work covered by the change, including actual payments for materials, equipment rentals, expendable items, wages and associated benefits to workmen and to supervisors employed full time at the site, insurance bonds and other provable direct costs, but not including any administrative, accounting, or other indirect or overhead costs, or any wages or benefits of supervisory personnel not assigned full time to the site, or any amount of profit or fee to the Construction Manager, subcontractor or sub-subcontractor. As used in this subparagraph, “percentage” shall mean an allowance to be added to or subtracted from the cost in lieu of overhead and profit and of any other expense which is not included in the cost of the Work covered by the change, as defined above. Percentage for the Construction Manager, a subcontractor, a sub-subcontractor or any other lower tier subcontractors for any work performed by their own forces shall be a maximum of 15% of any net increase, and 5% of any net decrease when the decrease results in a reduction of overhead requirements. The maximum percentage of 15% as applied to subcontractors shall be a cumulative percentage, inclusive of sub-contractor, sub-subcontractors and other subordinate contracting parties. In the event the Construction Manager does not perform any of the Work with its own forces, the percentage for the Construction manager shall be the same percentage increase or decrease as the Construction Manager Fee set out in paragraph 3.10.5 above.
Appears in 1 contract
Sources: Construction Agreement